BAE in charm offensive to staff over merger plan
The management of the defence giant BAE Systems has so far met with 600 UK staff face-to-face to persuade them of the merits of its proposed £30bn merger with Airbus-owner EADS.
Ian King, chief executive, is holding a series of town hall meetings to reassure employees that the tie-up, which would create a European champion capable of taking on the US's Boeing, would create more work in the UK in the future.
Critics of the deal have argued that British staff could be most vulnerable in any future jobs culls because of the more stringent labour laws in France and Germany, where so many of Airbus's workers are based. However, BAE has struggled on its own, having been forced to cut 20,000 jobs, many of which were in Britain, over the past five years.
Yesterday afternoon Mr King held a call with more than 60 of BAE's top managers to run through how the merger will work. The board have been stressing how the merged group will have €18bn of cash on its balance sheet, allowing for expansion in lucrative markets such as Asia and the Middle East.
Under takeover rules, BAE and EADS have until 10 October, 28 working days after news of their talks leaked, to agree terms. However, they can request an extension, which might be necessary as German, British, French and Spanish governments look to safeguard their national interests.
The deal will see BAE shareholders own 40 per cent of the combined group, with the balance taken by EADS investors. The governments would be given golden shares so that they could veto any future hostile takeover, but EADS's chief executive,Tom Enders, is keen to rid the company of existing state influence, which includes the right to nominate board members.
Mr Enders is the favourite to lead the new group, which will be listed in London and Amsterdam.
scienceScientists find the answer to a question that even puzzled Darwin
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
arts + entsThe 'Friends' actor on his new role as campaigner on addiction issues
Geoffrey Macnab: The Wolf of Wall Street's account of white-collar excess is A Rake’s Progress on steroids
scienceThe new development in bio-printing technology could be used in the future to restore lost vision - though years of research still await
architectureThe design collective which has stuck two fingers up at the modernists will call it quits at Venice
... But if you’re one of those poor souls offended by Jennifer Lopez’s choice of leotard, Grace Dent wants you to get a bloody grip
Sun will 'flip upside down' within weeks, says Nasa
Colin Farrell reveals ‘affair’ with Elizabeth Taylor: 'She was my last romantic relationship'
Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
India-US row over escalates over arrest of diplomat Devyani Khobragade in New York
Peter O'Toole: Tales of the late film icon
- 1 Facebook 'self-censorship': study records when you don't post to find more ways to share
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 British prisoner Dr Abbas Khan found dead in Syrian jail days before he was due to be handed over to MP George Galloway
- 4 Vitamin pills are a waste of money, offer no health benefits and could be harmful - study
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£44999 - £60001 per annum + Benefits: Pro-Recruitment Group: A Top Tier firm i...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Implementation...
£50000 - £65000 per annum + benefits + bonus: Harrington Starr: Project Manage...
Negotiable: Harrington Starr: My client deliver into the Investment Managemen...